PERFORMANCE MONITORING AND REPORTING ARRANGEMENTS

Medium-Term Strategic and Annual Planning

Medium- term Strategic Planning

• All SOE and SBs must develop a three-year Strategic Plan to the relevant Line Minister and the Minister of Finance to reflect the strategic objectives of the entity over the medium-term. This is to be updated on an annual basis.

Developing a Strategic Plan

• To facilitate SOE and SB the strategic planning process, each year, the Minister of Finance and Line Minister will provide the Chairperson of each SOE or SB with a Letter of Expectations, setting out the Government’s strategic objectives for the coming year. The Boards of Director of SOEs and SBs must use this letter as the starting point for framing their strategic plans.

Layout of The Strategic Plan

§  This plan should include:

• Vision and mission statements.
• Core business.
• Operating Environment.
• Strategic direction.
• Budget and Forecast Financial Statements.
• Forecast Capital Expenditures.
• Financial and non-Financial KPIs; and
• Performance targets for each of the Key Performance Indicators (KPIs).

 

 Timeline for submission of strategic plans

• Draft of the Strategic Plan to be completed by – June 30^th of each year.
• Submission to Board of Directors – July 1^st of each year
• Submission of Strategic Plan to Line Ministry and Ministry of Finance – August 31^st of each year for a 3-year period to be updated annually on a rolling basis.

 

 

Annual Planning

• Business/Financial Plan - A Financial Plan in the case of a Statutory Body, and a Business Plan in the case of a State-Owned Enterprise, reflecting how the entity proposes to operationalise its strategic objectives over the fiscal year.

Layout of the Annual Plan         

• This plan should include:

o   Previous’ Years achievements

o   SWOT Analysis

o   Main Goal(s) and Objectives

o   Possible Risks

o   Assumptions and Financial Projections

 

Timeline for Submission of Business and Financial Plans

o   Preparation of Business/ Financial Plan – June 30th of each year.

o   Submission to Board of Directors – July 1st of each year.

o   Submission of Business/ Financial Plan to Line Ministry and Ministry of Finance – August 31st of each year for a 3-year period.

Approval of the Strategic, Business and Financial Plans will be issued no later than December 31st of each year.

 

 

 

 

Financial Reporting

• SBs and SOEs shall adopt the same financial management principles as are applicable to the Central Government.

TIMELINE FOR SUBMISSION OF financial reports

Quarterly Reports

• SOEs and SBs shall report on the operations of the entity to the line minister and Minister of Finance at the end of the previous quarter and at such other time as requested. This includes both a word document and excel spreadsheet.

o   Submission of Quarter 1 reports – April 30^th of each year

o   Submission of Quarter 2 reports – July 31^st of each year

o   Submission of Quarter 3 reports – October 31^st of each year

o   Submission of Quarter 4 reports - December 31st of each year

 

 

 

 Annual Un-Audited Financial Statements

•  SOEs and SBs shall prepare and submit annual financial statements no later than March 31^st following the end of the fiscal year to the Director of Audit for auditing, with a copy to the Line minister and Minister of Finance.

• The Board of a Statutory Body shall provide a report on financial matters as requested by the Ministry of Finance.

 Penalties for non-compliance

• If the Board of Directors of a Statutory Body or State-Owned Enterprise fails to comply with reporting requirements, the Minister of Finance, in consultation with the Line Minister, may withhold any subvention due to the entity and/or impose a surcharge on the entity and/or its Board members for each day of noncompliance.